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  3. Study Set
    Corporate Finance Study Set 12
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    Exam 7: Net Present Value and Other Investment Rules
  5. Question
    The NPV Rule and PI Give the Same Results When
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The NPV Rule and PI Give the Same Results When

Question 2

Question 2

Essay

The NPV rule and PI give the same results when there is no conflict. In the case of a mutually exclusive set of investments, explain the potential conflict and the way it should be solved with supporting examples.

Correct Answer:

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